SalMar (Buy, TP: NOK480.00) - Some volumes pushed to Q1
We expect Q4 operational EBIT of NOK887m, in line with consensus at NOK899m (results due at 06:30 CET on 26 February). SalMar’s 7 January trading update revealed Norwegian harvest volumes of 37.8kt, some 4% below our expectations, but the CEO stated part of the shortfall was volumes pushed into Q1 due to storms. We reiterate our BUY and have raised our target price to NOK480 (460) following positive EPS revisions and a higher value for the Arnarlax stake.SalMar is a producer of Atlantic salmon and is integrated from roe and smolt to products and sales. Co. has farming operations in Central and Northern Norway, as well as in Scotland. Co. has operating licences for marinephase fish farms and hatcheries in central Norway and Troms County. Co. has 66 licences for production of farmed Atlantic salmon in Norway: 53 in central Norway (More & Romsdal, South and North Trondelag) and 13 in northern Norway (Troms)
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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